Why Should You Establish A Company In A Freezone!

Freezone companies come with its own share of advantages and that is precisely why most entrepreneurs these days are establishing startups in the freezones of the United Arab Emirates.

Here are some of the important benefits that you can enjoy with a freezone company formationin the UAE.

Government incentives

To attract more export business, the government of the UAE has made most of the free trade zonestax-free areas. If you choose to set up your business in a freezone area, you can enjoy tariff and regulatory incentives too. The tariffs vary from product to product. While the tariffs for raw materials and exportable goods are high, you can also enjoy normal tariffs. On an average, when you decide to get a company incorporation, you can enjoy the following benefits:

  • Exemption from custom duties;
  • Exemption from value-added tax (VAT);
  • Exemption from import and export tax;
  • Reduction in corporate tax;
  • 100% foreign ownership;
  • Increase in the limit of foreign employees.


Location and accessibility

Apart from the above incentives, a freezone company formation also offers the advantage of being located in the most accessible sites. You can establish your company near airports and ports. You can also choose a site that is closer to the highways to get the benefit of faster exports. In Dubai, there are certain free trade zones that even have toll roads between them and the port to make exporting faster.


Free zones also offer good and cheaper infrastructure. Many popular free zones have office spaces that are custom made for investors. Even for the storage of goods and services, freezones offer state-of-the-art spaces where you can keep your goods. Some of the offices are even equipped with safe vaults where you keep your precious commodities secured. The infrastructure of the locations is technologically advanced too.

Business-Friendly Legal Environment

The UAE is famous for its gentle and business-friendly approach to regulating business activities that are aimed to welcome more and more businesses. The people are helpful and most importantly they are ready to invest in new ideas. So as an entrepreneur, Dubai is a great place to start your startup company as you will never have to worry about the funds of your business.

Besides the above benefits, with a freezone company formation, you will have the right to decide the distribution of the capital of your business and it will entirely on you to have full or partial ownership. You will also be able to enjoy free fund transfer. Moreover, UAE has a highly qualified population and is full of people who have flown to the country in search of jobs. So recruiting will be a simple task too.

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